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Initial public offer of up to [] equity shares of face value of Rs. 10 each (Equity Shares) of Fincare Small Finance Bank Limited (Bank or Issuer or FSFBL) for cash at a price of Rs. [] per equity share (including a share premium of Rs. [] per equity share) (the Offer Price) aggregating up to Rs. [] crores (Offer) comprising of a fresh issue by the bank of up to [] equity shares aggregating up to Rs. 625.00 crores (the Fresh Issue) and an offer for sale of up to 17,000,000 equity shares aggregating up to Rs. [] crores (Offer for Sale and such equity shares, the Offered Shares)), comprising of an offer for sale of up to 14,934,779 equity shares aggregating up to Rs. [] crores by Fincare Business Services Limited (Promoter Selling Shareholder), an offer for sale of up to 471,754 equity shares aggregating up to Rs. [] crores by Wagner Limited, an offer for sale of up to 444,140 equity shares aggregating up to Rs. [] crores by True North Fund v llp, an offer for sale of up to 430, 842 equity shares aggregating up to Rs. [] crores by Indium iv (Mauritius) Holdings Limited, an offer for sale of up to 223,955 equity shares aggregating up to Rs. [] croresn by Omega TC Holdings Pte. Ltd., an offer for sale of up to 130,787 equity shares aggregating up to Rs. [] crores by Leapfrog Rural Inclusion (India) Ltd, an offer for sale of up to 126,151 equity shares aggregating up to Rs. [] crores by Kotak Mahindra Life Insurance Company Limited, an offer for sale of up to 116,981 equity shares aggregating up to Rs. [] crores by Edelweiss Tokio Life Insurance Company Limited, an offer for sale of up to 45,710 equity shares aggregating up to Rs. [] crores by Bharti Axa Life Insurance Company Limited, an offer for sale of up to 35,092 equity shares aggregating up to Rs. [] crores by Silver Leaf Aak (Mauritius) Limited, an offer for sale of up to 20,572 equity shares aggregating up to Rs. [] crores by Tata Capital Financial Services Limited and an offer for sale of up to 19,237 equity shares aggregating up to Rs. [] crores by Zuno General Insurance Limited (formerly known as Edelweiss General Insurance Company Limited) (together, referred to as the Investor Selling Shareholders and with the promoter selling shareholder, referred to as the Selling Shareholders). This offer includes a reservation of up to [] equity shares, aggregating up to Rs. [] crores (constituting up to []% of the post-offer paid-up equity share capital), for subscription by eligible employees (Employee Reservation Portion). The offer less the employee reservation portion is hereinafter referred to as the Net Offer. The bank in consultation with the brlms, offer a discount of up to Rs. [] to the offer price (equivalent of Rs. [] per equity share) to eligible employees bidding in the employee reservation portion (Employee Discount). The offer and the net offer shall constitute at least []% and [*]%, respectively, of the post-offer paid-up equity share capital of the bank. [The bank may, in consultation with the brlms, consider a pre-offer issuance of securities for an aggregate amount of not exceeding Rs. 125.00 crores (pre-ipo placement). The pre-ipo placement will be at a price to be decided by the bank, in consultation with the brlms and the pre-ipo placement, if any, will be undertaken with the roc. If the pre-ipo placement is undertaken, the aggregate amount raised from the pre-ipo placement will be reduced from the fresh issue, subject to the offer complying with rule 19(2)(b) of the securities contracts (regulation) rules, 1957, as amended (scrr). On utilization of pre-ipo placement proceeds (if any) prior to the completion of the offer, it shall be appropriately intimated to the pre-ipo placement subscribers that there is no guarantee that the bank may proceed with the offer or the offer may be successful and result into listing of the equity shares of the bank on the stock exchanges. The price band, the minimum bid lot and the employee discount (if any) shall be decided by the bank.

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Fincare Small Finance Bank is a digital-first SFB focused on unbanked and under-banked customer segments in rural and semi-urban areas.

The company aims to provide individuals and businesses with affordable financial products and services, to enhance access to savings, credit and other financial products for unbanked and underbanked individuals, MSMEs and unorganised entities in rural areas.

With that, let's take a look at the competitive strength and risk factors for Fincare Small Finance Bank Limited:

Strong commitment to financial inclusion with extensive rural franchise and expanding urban presence

As of March 31, 2023, the company covered 57,186 villages, with 2,757,621 base-of-pyramid households and 2,720,822 rural savings accounts. Its key competitive differentiator is that the company provides loan products covering the full lifecycle of rural customers, delivered using digital tools.

Multi-channel, low-cost distribution network with a diversified geographic presence

The company reaches its customers through a diversified, extensive multi-channel network combining traditional brick-and-mortar banking outlets and digital banking. This allows them to offer "last mile, doorstep connectivity" to customers while maintaining low operating costs. As of March 31, 2023, the company had a pan-India network of 1,231 banking outlets (including 373 business correspondent outlets) and 144 ATMs of which 92 were cash recyclers, spread across 19 states and three union territories, covering 338 districts, which together covered over 57,186 villages and reached 4.27 million customers.

Fast-growing stable deposit base with a growing CASA franchise

As of March 31, 2023, the company had 5.68 million deposit accounts (including 0.43 million accounts), representing a CAGR of 182.31% since March 31, 2021, covering both existing microloan customers and new-to-bank customers, especially in urban areas. As of March 31, 2023, the company had 3.85 million deposit customers, representing a CAGR of 377.87% since March 31, 2018.
  • As a result of the company’s limited operating history, it may not be able to compete successfully in newer product categories.
  • 25% of its total banking outlets are required to be located in unbanked rural areas. If the company cannot maintain expansion, it could adversely affect the business.
  • The company has received observations from the RBI under its on-site inspections, in the past.
  • Scale up lending portfolio with a focus on secured lending.
  • Continue to grow the deposit base with a focus on CASA and retail term deposits.
  • Increase the use of technology and data analytics.

Here are the key financials for Fincare Small Finance Bank Limited:

Particulars (in Rs. million)

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Kotak Securities

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Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.

Here are the steps to apply for Fincare Small Finance Bank Ltd IPO:

Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.

Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.

Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.

Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.

Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.

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